The markets had another case of the Monday's today. Thin volume and lack of conviction marked market activity. Things could pick up a bit heading into Asian trading with the release JPY Cabinet Office Report, CNY Leading Index and AUD New Home Sales. None of these reports should be market moving but may be enough to knock the rust of the joints. Heading into Asian and European trading the markets could remain range bound. I will be paying attention to the 50 fib on the GBPUSD at 1.5782 and the 1.2480 level in the EURUSD. These two price points could act as a pivot in the short-term. In New York trading Tuesday the USD Consumer Confidence Report is due, with expectations of a reading of 66. As always remember to keep your trades KEANE and play it safe.
EURUSD RESTING FOR THE WEEK AHEAD
The EURUSD traded in a tiny range on Monday. Spending the majority of it’s time in a 40 pip range. Not much you can do at the moment but watch. The pair remains in a triangle on a larger time frame. With the top around 1.2620 and the bottom around 1.2380. It is safe to say these levels will contain the pair ahead of Jackson Hole. In the short-term the pair may continue to range between 1.2590 and 1.2480.
Res 1.2560 1.2590
Keane Plan…Play the range until it breaks
GBPUSD STILL A FIB AFFAIR
The GBPUSD consolidated around the 1.58 level Monday. Support rest at the .50 Fib from the May Highs at 1.5782. A move to this level could spark buying interest. Resistance begins at the .618 fib at 1.5904. The 50 Fib at 1.5782 should act as pivot. A break of that level could attract price support at the .382 fib at 1.5660. As you can see it is still a Fib affair.
Keane Plan…Playing the Fibs.
AUDUSD CONSOLIDATING AROUND MID RANGE
Similar to the rest of the majors the AUDUSD consolidated in a very narrow range Monday. The pair is still below the ascending trend line that represented the bottom of the channel the cross road higher. A break of the daily lows 1.0370 could lead to a push towards 1.0320. Resistance rest at the top of the trend line near 1.0435. In Asian trading AUD New Home Sales and CNY leading indicators are due. A disappointing homes number could weigh on the pair.
Keane Plan. Expecting range bound trading. Watching the daily lows.
TICK TOC TICK TOC TICK TOC
The NZDUSD broke below trend line support in early trading this week. similar to the AUDUSD that broke trend line support last week the pair has seen little follow through. Until volume picks up once again in the market a slow drift sideways could be in the cards. The pair is currently drifting between two well pronounced support ans resistance zones. Resistance solid between .8235 and .8185. This level has capped all of the price action higher over the last month or so. Resistance is solid between .80/35, A break of this zone would indicate a trend move lower towards .7860.
Keane Plan…Looking for a test of either the support or resistance zones.
TWO STEP FORWARD TWO STEPS BACK
The USDCAD has faded from the .9950 level over the last few days. Any pick up in volume or risk could produce a challenge of this level. Support begins at .9885. It appears the pair is settling down in the consolidation zone from earlier in the year. The top of the broader range is at 1.0050 and resistance is at .98. In the short-term resistance is at .9950 and support is at .9840.
Keane Plan…The Range is your friend
THE USDJPY The BATTLE FOR 78.70
The USDJPY has been drifting above and below the 78.70 level for the last 24 hours. A clear cut direction still eludes the pair. A solid break above that level exposes 79.15. With questions regarding treasury yields up in the air until Friday I would not expect to see a marked move in the near term. Support remains below at 78.
Keane Plain…Watching for a confirmed break of 78.70